The $32.8 million loan backed by the hotel comprised 6 percent of the remaining collateral in the Credit Suisse-sponsored CSMC 2007-C1 commercial mortgage-backed securities transaction. Foreclosure was completed on May 7 and the CMBS trust was the beneficiary of the foreclosure sale.

According to servicing data provided by Trepp, net operating income through Nov. 30, 2016 was a negative $3.3 million on revenues of $8.9 million. Year-to-date occupancy was 77.1 percent with average daily rates of $183.52.

The 177-key property, located between Fifth and Sixth Avenues in the Midtown section of Manhattan, was built in 1913 and renovated in 2005.

Steven Vazquez, a managing director at C-III Capital Partners affiliate NAI Global, is currently marketing the property for sale, sources said. Vasquez did not immediately return a request for comment.

Officials at Ark Partners also did not immediately respond to a request for comment.